Question: When the iPhone was launched in the second quarter of 2008, it was priced at $599, and Apple sold 270.000 units during this quarter. In

When the iPhone was launched in the second quarter of 2008, it was priced at $599, and Apple sold 270.000 units during this quarter. In mid-September of that year, Apple reduced the price to $434, and sales rose to 1.119,000 during this next quarter. Without even doing an) calculation, these figures clearly show that Apple's demand was very elastic. How reliable do you think this estimate is? What other factors do you think should he taken into account for a more complete assessment of iPone's elasticity? (theblogpapei-.co.uk article/business 31 may09/price-elasticity-demand-iphone)

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Using the arc elasticity formula P1 599 and P2 434 Q1 270 and Q2 1119 So E ... View full answer

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